ARTICLE1156.
An obligation is a juridical
necessity to give, to do or not to do. (n)
NATURE OF OBLIGATION UNDER THE CIVIL
CODE
Civil Obligation
 Obligations that give the creditor a
right under law to enforce their
performance in court of justice.
Natural Obligation
 Do not grant a right of action to
enforce their performance although in
case of voluntary fulfillment by the
debtor, the latter may not recover what
has been delivered or rendered by
reason thereof.
Four (4) essential elements/requisites of an
obligation
1. PASSIVE SUBJECT (Debtor or obligor) -
he who has the duty of giving, doing, or
not doing
 Must comply with his obligation
whether he likes it or not
 The person who is bound to the
fulfillment of the obligation; he
who has a duty.
2. ACTIVE SUBJECT (Creditor or obligee) -
he who has the right to the
performance of the obligation for the
violation of his rights.
 The person who is entitled to
demand the fulfillment of the
obligation; he who has a right.
3. OBJECT OR PRESTATION (subject
matter of the obligation) or the conduct
required to be observed by the debtor.
 May consist in giving, doing, or
not doing
 Refers to the ITEM which is the
source of the controversy.
 Without the prestation, there is
nothing to perform.
4. A JURIDICAL OR LEGAL TIE (also called
efficient cause) or that which binds or
connects the parties to the obligation
 The tie in an obligation can
easily be determined by
knowing the source of the
obligation.
ART 1157
 Sources of obligation
 Law
 Contracts (licit acts)
 Quasi-contracts (infra)
 Delicts or crime (illicit acts)
 Quasi-delicts (infra, torts)
Obligation is a juridical necessity because in
case of non-compliance, the courts of justice
may be called upon to enforce its fulfillment
Obligations which give to the creditor or obligee
a right of action in courts of justice to enforce
their performance are known as civil
obligations.
OBLIGATION, RIGHT, AND WRONG (CAUSE OF
ACTION) DISTINGUISHED
(1) Obligation is the act or performance which
the law will enforce
(2) Right is the power which a person has
under the law, to demand from another any
prestation.
(3) A wrong (cause of action), is an act or
omission of one party in violation of the legal
right or rights of another, causing injury to the
latter;
Note: Cause of action is not the same as
obligation.
Note: Subject matter is not the same as
obligation.
What is SUBJECT MATTER?
 Refers to the ITEM which is the source
of the controversy.
What is CAUSE OF ACTION?
 Is the act or omission that is in violation
of the legal right or rights of another.
INJURY, DAMAGE, AND DAMAGES
DISTINGUISHED
Injury is the illegal invasion of a legal right; it is
the wrongful act or omission which causes loss
or harm to another
 is the legal wrong to be redressed
Damage is the loss, hurt, or harm which results
from the injury.
Damages denote the sum of money
recoverable as amends for the wrongful act or
omission.
 the recompense or compensation
awarded or recoverable for the damage
or loss suffered.
EXISTENCE OF ONE WITHOUT THE OTHER
Note: There may be injury without damage and
damage without injury.
(1) Proof of loss for injury. — A wrongful
violation of his legal right is not sufficient to
entitle a person to sue another in a court of
justice.
 there must be, in addition, loss or
damage caused to him by the violation
of his right
(2) Liability for damages of a person for
exercising his legal rights. — A person has the
right to take all legal steps to enforce his legal
and/ or equitable rights
 One who makes use of his legal right
does no injury
 If damage results from a person’s
exercising his legal rights, it is damage
without injury
NOTE: In other words, in order that the law will
give redress for an act (or omission) causing
damage, that act must be not only hurtful, but
wrongful.
ART1158 – Dapat expressly determined or
stated sya sa civil code of the Philippines or in
special law.
- If there is no law then most likely
there no obligation
ART1159- They have the right or freedom to
talk about their duties and obligation dun sa
contract and Malaya din sila magkaroon ng
agreement as long as hindi ito lumalabag sa
law.
Contract – meeting of minds between 2 or
more persons; one binds himself with respect
to the other
1. Binding force – contracts have the force
of law; contract must be valid and not
against the law
2. Requirement of a valid contract – not
contrary to law, morals, good customs,
public order and public policy.
3. Breach of contract – when a party fails
or refuses to comply without legal
reason
Note: Void contract does not exist
Compliance in good faith – compliance in
accordance with the terms of contract
ART1160 , 1161, 1162 – Sinasabi dito sa arts na
to yung mg art of laws or provision regulating
the obligation from quasi-contracts (Chap 1 title
17 of Civil code), obligation from criminal
offenses (Penal laws subject to the proviseions
of art 2177 and the pertinent prov of chap 2
etc.) and obligation from quasi-delicts (chapter
2 title 17 or civil code and by special laws.)
Contract- there is earlier agreement (civil
obligation)
Quasi contract - there is no prior agreement.
You voluntarily offer your services (Natural
obligation)
NO ONE SHALL BE UNJUSTLY ENRICHED
OR BENEFITED AT THE EXPENSE OF ANOTHER
Kind of Quasi- contract
- Solutio indebiti – Payment by
mistake
- Negotiorum gestio – Management
of another’s property
Delict – crime or violation of the law
Restitution – returning the object of
the crime to the injured party
Reparation – payment of the offender
of the value of object of the crime.
Indemnification – Payment for other
damages
Civil Liability - legal obligation that requires a
party to pay for damages
Criminal Liability - liability of a person toward
another person or the State for a commission of
a crime.
A civil case will typically involve a private
dispute between individuals or organizations,
whereas a criminal case will involve an action
that is against a criminal who broke the law.
Quasi delict - as if it is a crime, there is no
intention to commit a crime but the crime has
already been committed
- There is only civil liability
Crime distinguished from quasi-delict – page 29
Vinculum Juris – Juridical Tie
Quasi – As if
Compliance in good faith – compliance or
performance in accordance with the
stipulations or terms of the contract or
agreement

A Real right is a right in a thing that’s good
against the world.
A Real obligation is an obligation incurred as a
result of a real right.
Personal obligation is an obligation that is only
enforceable by the original obligee or against
the original obligor
ART 1163
Specific or determinate thing – a thing is
particularly designated or physically
segregated from others of the same class.
Generic or indeterminate thing - refers to a
class or genus and cannot be determined with
particularity.
Genus – a class or kind
If what is lost is a specific thing, the debtor has
no obligation to give but if it is generic then the
obligor still has the obligation to give
Generic - there is no cases as lost (GENUS NUN
QUAM PERIT/ GENUS NEVER PERISHES)
A good father of a family also called as ordinary
diligence which is the standard care required
NOTE: THEY CANNOT AGREE WITH
LOWER STANDARD OF CARE (SLIGHT
DILIGENCE)
NOTE: THEY CAN AGREE WITH HIGHER
STANDARD OF CARE (EXTRAORDINARY
DILIGENCE)
Common carrier (transportation)-
Extraordinary care required
Fortuitous events or force majeure - NOTE: IF IT IS SUBJECT TO MORTGAGE THEN IT
extraordinary occurrence beyond control
ART 1164
The fruit will go to the creditor (kapag andun na
yung fruit nung ginawa yung contract) however
if the parties agree that the fruit will remain to
the debtor then the fruit will stay to the debtor.
 Natural fruit - kusa lang andyan.
Spontaneous products of the soil and
the young and other products of
animal.
 Industrial fruit - cultivation or labor
 Civil fruit – derived by virtue of juridical
relation.
Perfection of the contract – birth of the
contract or the meeting of the minds between
the parties.
Contract of sale – the obligation arises from the
perfection of the contract.
“All fruits shall pertain to the vendee
(debtor) from the day on which the contract
was perfected”
Personal right
 power of a person to demand from
another
 there is a definite active and passive
subject
 enforceable only against a particular
person
Real right
 right or interest of a person over a
specific thing
 there is only definite active subject
without definite passive subject
 directed against the whole world
IS REAL RIGHT
Ownership acquired by delivery – creditor does
not become the owner until the specific thing
has been delivered to him.
Personal right happen on the period of the
delivery or the period that they agreed upon
and real right happen only after the delivery of
the thing.
ART 1165 (Applies to REAL OBLIGATION)
Obligation to give – real obligation
Obligation to do or not to do – personal
obligation
Specific Real obligation
Remedies of a creditor:
1. To demand specific
performance plus damages
2. To demand rescission or
cancellation plus damages
3. To demand for damages (if only
feasible remedy)
Generic Real obligation
Remedies of a creditor
1. To demand for performance
plus damages
2. Ask the obligation be complied
with at the expense of a third
person
3. To recover damages for breach
of obligation
Fortuitous event – event which cannot be
foreseen (earthquake) or although foreseen, it
is inevitable (typhoon)
Loss due to a fortuitous event in a SPECIFIC
REAL OBLIGATION extinguishes the obligation.
Exception: If the debtor delays and if
the debtor is guilty of bad faith
A GENERIC THING is NEVER LOSS (Genus nun
quam perit) Genus never perishes
ART 1166
NOTE: THE ACCESSORY WILL ALWAYS FOLLOW
THE PRINCIPAL (Even if it is not stated in the
contract of sale, it would mean that whatever
price u would put in contract of sale that
already includes the accessories) UNLESS
STATED THAT ACCESSORY IS NOT INCLUDED
Accessions – fruits of a thing or whatever is
attached to the thing either naturally or
artificially. (trees on land)
Accessories – things that is attached to the
principal thing to make it perfect (key of house)
Rights of creditor to accessions and accessories
– All accessions and accessories are considered
included in the obligation to deliver a
determinate thing
ART 1167
Positive personal obligation – obligation to do
 The obligee cannot compel specific
performance (force someone because
of the constitutional prohibition on
involuntary servitude) KAHIT NAG-
AGREE SA CONTRACT, DI MO SYA
PWEDE PILITIN IF AYAW NYA THAT IS
WHY MAY REMEDIES
Remedies:
 Ask a third person to do it but
at the expense of the debtor
 Hire a third person to undo
what was poorly done
ART 1168
Negative personal obligation – obligations not
to do
There is no specific performance and the very
obligation is to abstain from an act
Remedies:
 Hire someone else to undo it at
the expense of the debtor.
 Action for damages
ART 1169 NO DEMAND NO DELAY
Ordinary delay – lapse of agreed time but no
demand yet
Legal delay – lapse of agreed time and demand
has already been made (debtor will be liable
for damages)
 Judicial Demand – when complaint is
filed in court
 Extra Judicial Demand – When made
outside the court, orally or in writing
NOTE: IF THERE IS NO DEMAND THEN THERE IS
NO LEGAL DELAY
NOTE: NO LEGAL DELAY, NO DAMAGES
IN CASE OF FORTUITOUS EVENT:
Ordinary delay: Debtor is not liable for loss
due to fortuitous event
Legal delay: Debtor is liable for loss due to
fortuitous event.
No Demand No Delay EXCEPT:
R – Reciprocal obligation
Ex. Contract of sale (pagbili sa tindahan)
T – Time is of the essence
Ex. Wedding cake sa kasal sa specific na
date, kapag lumagpas sa date ofcourse di mo na
need
O – Obligation expressly provides
Ex. Nakalagay mismo sa contract na di
na need ng demand kasi nakalagay na dun sa
contract
L – Law provides or when the law expressly so
declares
Ex. Income tax law
D – Demand will be useless
Ex. Kapag kunwari namatay, nadestroy
yung car
KINDS OF DELAY OR DEFAULT:
Mora Solvendi – debtor’s delay
Mora accipiendi – delay of obligee to accept
Compensatio morae – delay on both parties
ART 1170 SI CREDITOR MAY KARAPATAN
MANGHINGI NG DAMAGES IN CASES OF:
When is the debtor liable for damages?
1. Guilty of Fraud
2. Guilty of Negligence
3. Guilty of Delay
4. Contravention of the tenor of the
obligation
Incidental fraud (dolo incidente) – committed
in the performance of an obligation already
existing because of contract.
Causal Fraud (dolo causante) – fraud employed
in the execution of a contract
Kinds of damages: patawarin since yung batas natin is
nirerecognize ang pagpapatawad.
1. Moral – U can ask for moral damages if
 NANGYARI NA. Creditor already
u can prove the u suffered anxiety,
has knowledge on the
sleepless nights, besmirched reputation
commited fraud by the debtor.
and wounded feeling. THIS MUST BE
PROVED AND NOT MERELY ALLEGED.
 Future fraud – bawal i-waive, hindi
2. Exemplary – To correct a wrong or to
kinukunsinte ng batas ang pandaraya
set an example for the wrong that was
 GAGAWIN PALANG. The
done
Creditor doesn’t have the
3. Nominal – To vindicate a right when no
knowledge on the possible
other type of damage or damages can
commission of fraud by the
be awarded to you.
debtor.
4. Temperate – being asked of when exact
amount of damages cannot be ART 1172
determined.
5. Actual – when there is actual loss like NEGLIGENCE – Kapabayaan (Culpa)
loss of profit. THISMUST BE PROVED
 Regulated by COURTS according
6. Liquidated – In contract there is already
to the circumstances
a predetermined amount that must be
(difference sa 1171)
paid in case of breach of the
 Needs to prove if there’s a
agreement.
NEGLIGENCE (ORDINARY
FRAUD – Pandaraya (Dolo) (Deceipt) NEGLIGENCE OR GROSS
NEGLIGENCE)
NEGLIGENCE – Kapabayaan  Test the negligence if DUE
DILIGENCE is exercised (Good
Negligence shows bad faith = equal
father of a family)
fraud (Nonperformance of the
 CONTRACT OF CARRIAGE
obligation)
(COMMON CARRIER) –
DELAY – Pagkaantala EXTRAORDINARY DILIGENCE
(ex. Sa jeep)
CONTRAVENTION – Hindi pagsunod sa napag-
usapan Kinds of negligence:

Fraud and negligence distinguished – page 54 1. Contractual negligence (culpa

ART 1171
FRAUD – Pandaraya (Dolo) (Deceipt)
 Past fraud – pwede i-waive (Consent)
yung past fraud po is nakaraan na yung
nagawa and ang pwede gawin is
contractual)
- negligence in the performance of a
contract
- Master-servant rule (if the servant is
negligent then the master is also
negligent (NEGLIGENCE NI EMPLOYEE
AY NEGLIGENCE DIN NI EMPLOYER)
 - Diligence of a good father of a family is
not proper defense
2. Civil negligence (culpa acquiliana) aka.
Quasi delicts or culpa extra-contractual
- Acts or omission that cause
damage to another without any
pre-existing contract
- Master –servant rule does not
apply.
- Diligence of a good father of a
family is a proper defense
-
3. Criminal negligence (culpa criminal)
- Negligence that result in the
commission of a crime
- Diligence of a good father of a
family is not proper defense
Ordinary negligence
Gross negligence – kapag masyadong mabigat
yung kapabayaan
Effect of negligence on the part of creditor:
If the creditor is the cause of his OWN INJURY
– he cannot recover damages
If contributory - may recover damages but
court will mitigate the damages to be awarded
ART 1173
Omission of that diligence – nawala yung
ordinary care
Negligence shows bad faith = equal fraud
(Nonperformance of the obligation) DEBTOR IS
LIABLE FOR ALL DAMAGES THAT ATTRIBUTED
TO THE NON-PERFORMANCE OF THE
OBLIGATION
Factors to be considered in negligence:
1. Nature of the obligation
2. Circumstances of the person
3. Circumstances of time
4. Circumstances of place
Measure of liability for damages - awarding
damages is to place the innocent party in the
same position of when if the contract or
obligation had been performed according to its
terms
ART 1174
Fortuitous event (force majeure) – event which
cannot be foreseen (earthquake) or although
foreseen, it is inevitable (typhoon)
1. Acts of God – earthquake, flood, rain,
lightning
2. Acts of Man – War, fire, robbery,
murder
Kinds of Fortuitous event:
1. Ordinary fortuitous event – common
and could reasonably foresee (rain)
2. Extra-ordinary fortuitous event –
uncommon and could not foresee
(earthquake)
Rules of Fortuitous event
General Rule: No person shall be responsible
for fortuitous event (determinate thing).
DEBTOR IS LIABLE FOR FORTUITOUS EVENT
(ONLY IF IT IS A SPECIFIC OR DETERMINATE
THING)
- THIS IS NOT APPLICABLE TO
GENERIC THINGS because it can be
replaced.
Exemption to the rule:
1. When it is a generic thing (generic thing
never perishes)
2. When expressly specified by law (ex.
article 1165) (IF MAY LEGAL DELAY)
3. When there is bad faith, debtor is still
liable
4. When declared by stipulation or by
contract(contract provision) KAPAG
NAPAG USAPAN SA CONTRACT NA
KAHIT MAY FORTUITOUS EVENT TULOY
PARIN OBLIGATION
5. When the nature of the obligation
requires assumption of the risk
Loss due to a fortuitous event in a SPECIFIC
REAL OBLIGATION extinguishes the obligation.
Exception: If the debtor delays and if
the debtor is guilty of bad faith
A GENERIC THING is NEVER LOSS (Genus nun
quam perit) Genus never perishes
ART 1175
Usury – contracting for or receiving interest in
excess of the amount allowed.
Usurious Transaction = High interest loans (EX.
5, 6) SOBRA SOBRANG INTEREST NA INIIMPOSE
SA LOAN
Allowed by the government interest rate = 12%
In 5, 6, in every 5 pesos = 6pesos (1peso
interest) 20% interest rate = usurious
transaction
USURY LAW – BAWAL ANG USURIOUS
TRANSACTION (BUT NOW LEGALLY
INEFFECTIVE) Right now there is no ceiling as to
how much interest rate they can impose AS
LONG AS it is not unconscionable or
unreasonable.
ART 1176
1st – Interest bearing debt
2nd – Debt payable in installments
Kapag nagbayad ka ng principal tapos di mo
binayaran interest tapos di naman nagreklamo
si creditor, ang assumption ng batas is bayad
mo na pati yung interest.
Presumption – pwede marebutt by contrary
evidence
Two kinds of presumption:
1. Conclusive presumption – cannot be
contradicted
2. Disputable or rebuttable presumption
– can be contradicted or rebutted by
presenting proof to the contrary
Principal + interest = total na babayaran
When presumptions do not apply:
1. With reservation as the interest
2. Receipt without indication of particular
installment paid
3. Receipt for a part of the principal
4. Payment of taxes
5. Non-payment proven
ART 1177
Remedies of the creditor (CUMULATIVE
REMEDIES) – meaning first remedy muna bago
yung sunod
1. Exact fulfillment – creditor can give a
demand letter demanding to pay and if
debtor did not fulfill then the creditor
 can file a case for specific performance
or collection of sum of money.
2. To pursue leviable properties of the
debtor – find properties that you can
attach na enough para dun sa debt.
3. Subrogate in debtor’s rights against
third persons (accion
subrogatoria/subrogatory action)-
creditor will look if the debtor has a
receivable.
4. Action for rescission (accion pauliana)
– SUBSIDIARY REMEDY. Cancel
contracts entered into by the debtor
with third party persons. Ex. If may
contract of sale yung debtor or nag
donate ng something then pwede mo
ito ipa-cancel IF YOU CAN PROVE THAT
THE DONATION WAS MADE BY THE
DEBTOR TO DEFRAUD YOU then you
can ask the court for the donation to be
rescind.
2. Parties agree that the right will not be
transmissible
3. When the law declares that it is not
transmissible
You can inherit the debt of your parents after
their death
Limitation on inheriting debts: The
limitation is the extent of the value of the
properties that you inherited. KUNG ANO
YUNG HALAGA NA NAIWAN NG PARENTS MO
GANUN LANG BABAYARAN MO. Ex. 10M
utang then yung property nung parents mo is
8M lang then 8M lang babayaran mo
You can still collect the debt owed to your
parents after their death

NOTE: you can only exercise accion

pauliana ONLY AFTER EXHAUSTING ALL
OTHER REMEDIES because it is a
SUBSIDIARY REMEDY.

ART 1178

Transmissibility of Rights – rights are

transmissible

GENERAL RULE: All rights arising from an

obligation are transmissible

Exemptions to general rule:

1. When by nature, it is NOT transmissible

– PURELY PERSONAL RIGHT (Ex. Right
to vote)
ART 1179 time as to when the debtor will perform his
obligation.
Pure obligation – obligation whose fulfillment is
not dependent upon a condition (future,
uncertain or past event unknown to the parties)
DEMANDABLE AT ONCE

- Characterized by its IMMEDIATE

DEMANDABILITY. Pwede mag
demand agad yung creditor.

Conditional obligation – dependent upon the

happening or non-happening of a future and
uncertain event (BOTH MUST BE PRESENT)

If the obligation is dependent a FUTURE and

CERTAIN EVENT that is called OBLIGATION
WITH A PERIOD

TWO PRINCIPAL KINDS OF CONDITION

Suspensive condition – GIVE RISE TO THE

OBLIGATION the obligation is suspended until
the happening of the uncertain event which
constitutes the obligation (ex. Bibigyan kita ng
1M kapag nanalo ka sa boxing)

Resolutory conditions – the happening of the

event will EXTUNGUISH the obligation. (ex. I
will give u 10k monthly allowance until u
graduated in college)

ART 1180

If the agreement or contract will provide that

the debtor binds himself to pay or promises to
pay when his means permit him to do so
(kapag kaya na magbayad)

The acquisition of the means to pay is a PERIOD

or certain to happen. OBLIGATION WITH A
PERIOD

If debtor and creditor CANNOT AGREE as to

specific time then the court will fix the period of